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This is restricted cash accounts. This rule for "restricted" accounts will apply at ALL brokers. Don't allow your account to become restricted.
-----Original Message-----
From: uenal.mutlu@xxxxxxxxxxx [mailto:uenal.mutlu@xxxxxxxxxxx]
Sent: Friday, November 21, 2003 7:12 AM
To: realtraders@xxxxxxxxxxxxxxx
Subject: Re: [RT] Ameritrade "T+3"
It is indeed true! I found this info at their site:
"RESTRICTED TRADING IN CASH ACCOUNTS
On May 29, 2003, Ameritrade implemented changes to its systems relating to the
calculation of funds available for trading in cash accounts. If you have any
questions concerning the current balance shown on the Web site, please contact a
Client Services representative at 800-823-2835.
Under applicable interpretations issued by the staff of the Federal Reserve Board
System, cash account clients are prohibited from making a practice of selling
securities without having paid for their purchase with "Available Cash" in their
account. "Available Cash" includes existing cash in the account, the proceeds of
settled sales of fully-paid for securities, and additional cash deposits.
Proceeds of a sale of a security where the prior purchase had not yet settled may
not be included as "Available Cash" before the settlement date of that prior
purchase - which is generally three business days.
The following example illustrates activity that will result in a 90-day
restriction:
A client is holding $10,000 cash in a cash account. The client then makes the
following transactions:
The client buys a position in Company A for $10,000, applying the $10,000 in cash
to pay for the purchase.
The client then sells that position in Company A and nets at least $10,000 in
sale proceeds.
Next, the client buys a position in Company B for $10,000, relying on the
proceeds of the sale of Company A shares that have not settled to pay for the
purchase.
Before the sale of Company A has settled, the client sells the position in
Company B and nets $10,000.
In the above example, the client sold Company B shares before paying for them.
Trading in this manner in a cash account may result in a 90-day restriction,
limiting purchases to the "cash" available in your account on trade date. "
----- Original Message -----
From: <uenal.mutlu@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, November 21, 2003 6:03 AM
Subject: [RT] Ameritrade "T+3"
> Is it true that Ameritrade does not let you reuse
> the money of a closed position for 3 days???
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